The additional sugar in the domestic market will ensure reasonable prices all over the country
Keeping in view the strong demand for sugar for the upcoming festivals of Onam, Raksha Bandhan, and Krishna Janmashtami, the additional quota of 2 LMT (over and above 23.5 LMT already allocated for August 2023) is being allocated for August 2023. The additional sugar in the domestic market will ensure reasonable prices all over the country.
Despite a 25 per cent increase in international sugar prices in the last year, the average retail price of sugar in the country is about ₹ 43.30 per kg and is likely to remain in range bound only. There has been less than 2 per cent annual inflation in the country in sugar prices in the last 10 years.
During the current Sugar Season (Oct-Sep) 2022-23, India is estimated to have produced of 330 LMT sugar after the diversion of about 43 LMT for ethanol production. Domestic consumption is expected to be around 275 LMT.
At the present stage, India has sufficient sugar stock to meet its domestic demand for the remaining months of the current SS 2022-23 and the optimum closing stock of 60 LMT (sufficient to meet sugar consumption for 2 ½ months) will be available at the end of this season i.e. 30.09.2023.
The recent increase in sugar prices will cool down soon as each year during July-Sep, just before next season, prices increase and then come down on the start of cane crushing. Thus, the price rise in sugar is very nominal and for a short duration.
